The Supply Chain Advisory focussed on Strategic Plan to Improve Profitability, Inventory Stocking Strategy across Supply Chain, Drop Shipping Concept, Replenishment Nuances, S&OP, Supply Chain IoT and Standard Work. The crux of the Supply Chain Advisory services provided are explained below:
As the business grows 10x or more, one area which could potentially be a bottleneck is each function becoming operational silos. To avoid this, well aligned functional goals are a must.
The opt tool for the prioritization is ‘the Pareto Chart’; using this top suppliers can be identified. Pareto chart is mapped by sorting the data in descending order, then calculating cumulative sum and percentage to total sum value.
– Dedicated team for platinum accounts; the top notch performers in the organization are part of this core group
– Platinum account managers won’t handle other accounts event if they have bandwidth
– When a new supplier is on-boarded, if the sales forecast falls within the parameters set for platinum, the supplier starts in the platinum account
– Top performers at the other accounts (who move more accounts from non platinum to platinum) would move in to the platinum account management team.
– Irrespective of the effort to move one account to platinum from non platinum, the account immediately moves onto a platinum account manager.
Differentiated targets between platinum and other suppliers
– Top line
– Product availability
– On time delivery
– Margin / inventory
– Customer feedback
Three main buckets in the stocking –
Has stock cover for the demand variability and the lead time variability
This is the stock needed to cover for the lead time (time from the time order is placed to the time when the shipment is received in the facility
Stock kept by the constraints like the minimum order quantity or the frequency of orders
Inventory Replenishment Cycle:
– Supply Chain IOT
– Standard Work
– PFEP (Plan for Every Part)